Legal Question in Investment Law in Missouri

Portfolio Management

I currently actively manage the stock portfolios of two family trusts. I have been approached by individuals outside my family interested in having me manage their invesment portfolios. I would manage them for them for a fee based on asset growth like a hedge fund does. I have a bachelor's degree in finance, and previous experience in the securities industry. I currently work outside the securities industry in sales. My question is; what certificates, or licensures would legally be required for me to trade and manage money for other people for a fee.

Asked on 1/02/06, 5:10 pm

1 Answer from Attorneys

Michael Paradise Law Offices of Michael S. Paradise

Re: Portfolio Management

Your two major concerns involve federal and state questions and depend on (i) the state of residence of each of your clients (i.e. blue sky issues as they relate to you performing investment advisory services) (ii) the number of "clients" for whom you perform or expect to perform services and (iii) the amount of assets that you will be managing.

In many cases, under recently enacted legislation, the SEC is mandating that investment advisors register as such with the SEC.

The analysis is not difficult but requires more facts. If you would like to speak further, feel free to contact me.

Michael S. Paradise

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Answered on 1/02/06, 5:30 pm

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